Essar Energy Mauritius arm to buy 2.4 per cent stake in Essar Oil

London-listed Essar Energy Plc said has said that its Mauritius-based unit will buy 2.41 per cent stake in Essar Oil for over Rs 267 crore.

"Essar Energy Holdings Ltd, Mauritius has agreed to purchase 32,947,191 shares in Essar Oil Ltd representing a 2.41 per cent interest (including Global Depository Securities), from Imperial Consultants and Securities Pvt Ltd," the company said in a statement on Monday.

The acquisition is pursuant to a call option agreement entered into with Essar Investments Ltd which subsequently demerged its investment division to Imperial. The call option agreement was entered into in April 2010.

"The option was exercised at a price of Rs 81.11 per share and the total consideration to be paid for the shares is $48,650,039," Essar Energy said.

"Essar Energy's decision to exercise the option was driven by its desire to consolidate non-public holdings of Essar Oil," the statement said.

The purchase is being funded from funds available within Essar Energy.

EEHL has the option to purchase a further 6,215,026 shares in Essar Oil, representing a 0.46 per cent interest (including GDS), from Imperial. This option will expire on June 30, 2014.

"Whilst EEHL is under no obligation to purchase the remaining shares, it is EEHL's current intention to do so," it added.